The Nation Newspaper

Tag: Central Bank of Nigeria

  • Alleged fraud: A.G Moeller not registered by CBN – Witness

    The Federal High Court in Lagos on Thursday heard that a firm, A.G. Moeller Limited, is allegedly not registered as a financial services company by the Central Bank of Nigeria (CBN).

    A former Chief Accountant at Cross Country Limited, Mr. Godsday Chukwusa ,stated this while testifying in the trial of A.G. Moeller’s Managing Director, Adeloye Olukemi.

    The police arraigned Olukemi before Justice Okon Abang for allegedly defrauding Cross Country chairman Bube Okorodudu, of N80million.

    Chikwusa had earlier testified that sometime in March 2007, Cross Country wrote the defunct Oceanic Bank Plc, Fidelity Bank Plc and EBN Finance Limited (a subsidiary of the defunct Intercontinental Bank Plc) and AG. Moeller for finance lease facilities to enable it buy some vehicles.

    He said AG Moeller gave Cross Country N140 million to finance the acquisition of 40 buses with a tenor of 24 months at 60 per cent interest rate per annum.

    But Chukwusa said the total sum payable to AG Moeller Limited at the end of the tenor stood at N228 million.

    “For a transaction of N288million, Cross Country paid about N223million, but AG Moeller said the company was still owing N213million,” the witness said.

    According to him, what Cross Country owed AG Moeller, include default charges, was N19million rather than N213million.

     

  • Transformers at work

    Transformers at work

    Just as one would imagine, Nigerians have since taken to the overdrive in the wake of the crisis of falling oil prices. For a crisis that took nearly a decade to berth, it is a revelation of how pretty little has changed that the debate has dwelt largely on short-term, mitigating measures. We saw this in the knee-jerk response by the federal government when it announced a rash of barely well-thought out measures to usher in a season of austerity penultimate week. The Central Bank of Nigeria has since complemented these with equal but no less lethal dose of measures: devaluation and a hike in interest rates, both of which have the overriding effects of further shrinking an economy in dire need of muscle to lift it. Now, the expectation is that the measures would somehow help douse the fires stoked by falling crude oil prices. Such an illusion!

    Of course, it’s merely a return to the ancien regime of unworkable therapies; solutions tailor-made to deliver to maximum pain all in the guise of treating an ancient ailment. It’s the old pathway – of adjustment, belt-tightening and austerity – which speaks to nothing else than the need to balance government’s consumptive books.

    The question of whether any lessons have been learnt from previous experience would seem entirely superfluous, at least at this time. The nation, after all, is supposed to be in crisis of such a nature that could be rightly termed global, forces over which the managers of Nigeria’s economy have little or no control. However, for an economy that’s probably the most dissected in the entire universe, the missed opportunities of the past decade and the criminal mismanagement which attenuated it should ordinarily provide enough to chew upon at least to the extent these have berthed in the current so-called crisis.

    As it is, there is really no use crying over split milk. One thing that is clear however that there can be no running away from the gross misunderstanding, if not the wrong assumptions that underlie the current therapies as proposed by the government and its banker.

    In this regard, I found myself reflecting on a statement made by the Country Director of the World Bank in Nigeria, Omo Ruhl, some years ago. According to the World Bank chief, “Nigeria is not a mono-product economy, it is a mono-revenue economy and a mono-export economy because in the other sectors there are no exports, very low fiscal revenues, that is where your challenge is but oil is only 17 per cent of your GDP, 83 per cent is everything else taken together”.

    To the above, he would add:  “Oil is actually the fourth largest sector of the Nigerian economy, the largest sector is agriculture, the second largest sector is wholesale and retail and services is the third largest. So what Nigeria should do is focus on propelling these other sectors forward so that they can also export, so that you are less dependent on oil and finding ways of generating revenues for the government for legitimate investment in infrastructure, health and education”.

    That statement would seem no less true in Nigeria’s post-rebased economy as it was three years ago when it was made.  My quick check actually revealed that the share of the oil economy to the GDP shrank to 14.40 percent in 2013 although petroleum exports revenue still accounts for over 90 per cent of total exports revenue.

    The implication of the above should not be lost. The contribution of the non-oil segment of the economy has been grossly understated. Here, we are talking of a sector that accounts for more than 85 percent of the GDP. Even at normal times, one would have expected that the segment would constitute the pivot around which the economy is expected to spin. Under an emergency, that segment naturally assumes the status of the proverbial golden hen deserving of extraordinary protection from the fiscal and monetary authorities.

    But what do we get? Policies so surreal, so utterly skewed towards speculation that they may have been conceived in the virtual Island of Ashtabula!

    Let me be clear here: some of the measures such as the cleaning up of government finances as proposed by Finance Minister Ngozi Okonjo-Iweala have some merit. The problem is that we have been on that road for more than 10 years with little to show for it in practical terms. Have we not lived with the pension scam, the subsidy-gate and all manners of industrial scale thefts that have reduced the science of public finance to a sham? What about the menace of ghost workers known to rob the treasury of billions annually? A case of one being less toxic than the other?

    So much about the so-called luxury tax; what’s the big deal about the tax on goods consumed by Nigeria’s idle rich when a single waiver by a highly connected individual can actually fetch the equivalent of 10 years luxury tax bill? And how come nobody has ever thought about the line of revenue before now despite the deficit holes in successive cycle of budgets?

    I must admit that the option of devaluation, the hike in Monetary Policy Rate and the raise in Cash Reserve Ratio for private sector funds is the textbook stuff. Devaluation isn’t only a way to conserve foreign exchange; it has the dual advantage of boosting exports. Classic textbook stuff! Yes, it all makes sense: oil has run into troubled times in the global marketplace hence the need to curb the pressure on the foreign reserve. Time to encourage local producers to take to export to earn more foreign exchange. A win-win? Bad news. Nothing aside crude oil and raw cassava, to export. Both share the same fate of declining global prices!

    Left however to the CBN, the real source of headache is the activities of the band of speculators swarming on the foreign reserves. Now that is supposed to be news in an economy where just about any soldier of fortune who calls himself foreign investor can make a run on our reserves! Of course, the question of tracking the shadowy group whose activities constitute, in the reasoning of the apex bank, economic sabotage would seem academic in the circumstance.

    So what to do? Let everyone bite the bullet. Devalue the currency; get everyone in a non-discriminatory way to pay more for their forex requirements. It does not matter whether you are bringing in industrial inputs, finished goods or doing capital flight.  Second, raise the lending rates to deter borrowing and hence reduce so-called liquidity even at the risk of sounding the death knell for the real sector already starved of its vital juice. With more money available to the federal and state governments to spend, and with money to be made from arbitrage, everyone, except the odd segment producing the 85 percent of the GDP, should be happy.

    How about that as transformation; their transformation.

     

  • CBN refunds N17b to consumers

    • Holds awareness campaign in Imo

    The Department of Consumer Protection,  Central Bank of Nigeria (CBN) yesterday in Owerri,said it received about 4,400 petitions from aggrieved consumers and has refunded N17 billion as redress, since it was created two years ago.

    Speaking during the flag off of a one week Sensitisation/Awareness Campaign, the Director of the Department, Mrs. Umma Aminu Dutse, who was represented by Hajiya Khadijah Kasim, Head Consumer Education, said the programme was to create awareness and understanding on financial products and services of the CBN.

    She added that the awareness campaign was only initiated to equip the consumers with the requisite knowledge to be able to deal with financial institutions from an informed perspective.

    According to her, the campaign would feature an interactive feedback session on the various initiatives of the CBN such as the “cashless” policy, biometrics verification project which she noted is aimed at ensuring maximum security and protection of customers’ funds against fraud and dispute redress framework.

    The exercise which she explained had already taken place in some states in the country would be replicated across the entire federation to ensure deeper result is achieved.

    Dutse also said part of the campaign would be to sensitise people on how to access loans from micro finance banks and other financial institutions.

    “We shall therefore create awareness and understanding on financial products and services, inform them about their rights and responsibilities, various developmental initiatives of the CBN such as the programe on Micro and Medium enterprises and how to access the fund,”she said.

  • Presidency challenges Sanusi to respond to allegations against him

    Presidency challenges Sanusi to respond to allegations against him

    *Approves Forensic audit of NNPC accounts

    The Presidency has challenged the suspended Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi to defend himself against the allegations raised against him.

    While advising Sanusi to stop misinforming the public, the Presidency insisted that his  suspension  had nothing to do with his claims that some sums of money were not remitted to the Federation Account by the Nigerian National Petroleum Corporation (NNPC).

    Addressing State House correspondents on Wednesday, the Special Adviser to the President on Media and Publicity, Dr. Reuben Abati maintained that Sanusi is spreading false allegations because he has axe to grind with the government.

    The Federal Government, he said, has authorized the engagement of reputable international firms to carry out forensic audit of NNPC accounts.

    He said: “We have noted with disappointment, the unrelenting attempt by the Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi to falsely portray his recent suspension from office as an attempt by the Presidency to bury his allegation that huge sums of money due to the Federation Account are unaccounted for by the Nigerian National Petroleum Corporation (NNPC).”

    “The Presidency wishes to reaffirm that Mallam Sanusi’s suspension has absolutely nothing to do with his unproven and inconsistent claim that $49.8 Billion, $12 Billion or $20 Billion is missing from the national treasury.

    “As was clearly stated in the letter suspending him from office and confirmed by President Goodluck Jonathan in his last Presidential Media Chat, Mallam Sanusi’s suspension was wholly based on the need for him to step aside while the weighty charges of financial recklessness, gross misconduct and persistent disregard for laid down rules and regulations in the management of the Central Bank made against him by the Financial Reporting Council of Nigeria and others are properly investigated.”

    He went on: “It is most unfortunate that instead of trying to provide some reasonable response to the clear and unambiguous query of his official conduct as Governor of the Central Bank, Mallam Sanusi  has cynically chosen to whip up public sympathy for himself and anger against the Federal Government by deliberately misleading unwary Nigerians and the international community into believing the falsehood that he is being punished for exposing corruption.

    “In recent days, the suspended CBN Governor has, following in the footsteps of others who have an axe to grind with the government, taken to spreading his false claims and allegations through gullible foreign media correspondents, telling them among other things that his threat to force commercial banks to open up their books to unravel the whereabouts of the “missing” funds whether $49.8 Billion, $12 Billion or $20 Billion, ultimately led to his suspension.”

    “He also continues to make the mischievous claim that the government is somehow involved in a scam to divert huge sums of money from the Federation Account through the misappropriation of kerosene subsidy funds.”

    Stressing that Sanusi’s allegations are untrue, Abati said that Government is making no effort to bury them as falsely claimed.

    According to him,  relevant committees of the National Assembly are still investigating the claims and that the suspended CBN Governor is free to give evidence before them to back up his allegations.

    “Furthermore, in keeping with its avowed commitment to full transparency, openness and accountability in governmental affairs, the Federal Government has authorized the engagement of reputable international firms for the recommended forensic audit of NNPC accounts.”

    “The Presidency condemns Mallam Sanusi’s resort to playing politics with serious national issues.  His suggestion that the phantom missing funds may have been diverted to fund campaigns for next year’s general elections is mischievous, irresponsible and designed to incite other political parties and members of the public against the Federal Government.”

    “The claim which amounts to cheap blackmail against the government and was clearly made in furtherance of a selfish personal agenda is most unbecoming of someone who still holds the High Office of Governor of the Central Bank of Nigeria.”

    “The Presidency would not ordinarily have wished to join issues with Mallam Sanusi who as CBN Governor remains an appointee of the President, but the very unacceptable manner in which Sanusi has been misinforming the public made it imperative that this statement be issued,” Abati added

  • CBN cuts loans to banks by 75 per cent to N1.44tr

    CBN cuts loans to banks by 75 per cent to N1.44tr

    The Central Bank of Nigeria (CBN) reduced its loans to banks by 74.9 per cent to N1.44 trillion in the fourth quarter of last year.

    This was part of its belt-tightening policy.

    The loans came as Standing Lending Facility (SLF), representing a daily average credit of N24.09 billion to the lenders, while interest paid on SLF stood at N0.87 billion. The CBN loaned banks N5.75 trillion in the preceding quarter, which ended on September 30.

    The drastic cut in the loans, The Nation learnt, was not only meant to support the naira, but also to secure the declining foreign reserves which have lost over $3 billion in the last one month.

    The SLF, given at 14 per cent, is an overnight CBN credit available on banking days between 2 pm and 3.30 pm, with settlement done on same day value.

    The CBN explained that money market rates were influenced by the liquidity condition in the banking system arising from the introduction of the 75 per cent Cash Reserve Ratio (CRR) on all public sector deposits, coupled with the delay in the release of fiscal allocation.

    The CRR on all public sector funds was raised further to 75 per cent at the January 21 Monetary Policy Committee (MPC) meeting of the CBN. The CBN had during the MPC meeting maintained the monetary policy rate (MPR) at 12 per cent, and kept the symmetric corridor of plus two per cent around the MPR for SLF.

    However, the SLFs are available only to banks and discount houses that have executed the Nigerian Master Repurchase Agreement (NMRA) with the regulator. The NMRA covers the operations of the SLF and addresses issues relating to pricing, duration, custodian as well as default resolution in lending.

    Furthermore, the CBN Economic Report for the fourth quarter, showed that the total assets and liabilities of the Deposit Money Banks (DMBs) stood at N24.3 trillion.

    The figure, the report said, represents an increase of 4.4 per cent over the level at the end of the preceding quarter. The funds, it said, were sourced largely from increased mobilisation of demand deposit and Federal Government deposit were used for accretion to reserves and to purchase government’s securities.

    The CBN said banks’ credit to the domestic economy rose by 8.6 per cent to N12.2 trillion, when compared with the date from the preceding quarter. The development, it said, was attributed largely to the 346.9 per cent increase in claims on the Federal Government.

    Also, the liquidity ratio rose by 1.8 percentage points above the level in the preceding quarter, and was 9.5 percentage points above the stipulated minimum ratio of 30 per cent. The loans-to-deposit ratio stood at 36.3 per cent, and was 2.9 percentage points above the level at the end of the preceding quarter, but was 43.7 percentage points below the prescribed maximum ratio of 80 per cent.

    The quarterly report also said gross domestic product (GDP) was estimated to have grown by 7.7 per cent, compared with 6.8 per cent in the preceding quarter. The development, it said, was driven, largely, by the growth in the non-oil sector.

    Broad money supply, (M2), grew by 9.1 per cent, in contrast to the 7.9 per cent decline recorded at the end of the preceding quarter.

    The CBN said the development reflected, largely, the 14.9 per cent increase in domestic credit (net) of the banking system. Similarly, narrow money supply, (M1), rose by 11.4 per cent, in contrast to the 9.3 per cent decline at the end of the preceding quarter.

    Over the level at end-December 2012, broad money supply (M2) grew by 1.2 per cent, owing largely to the 18.5 per cent increase in net domestic credit, which more than offset the 26.0 and 5.9 per cent decline in other assets (net) and foreign assets (net) of the banking system, respectively. Reserve money (RM) rose at the end of the fourth quarter of 2013.

    Available data indicated that banks’ deposit and lending rates generally trended upward, while the weighted average inter-bank call rate fell by 3.23 percentage points to 11.02 per cent, reflecting the liquidity condition in the inter-bank funds market.

    Provisional data indicated that the value of money market assets outstanding increased by 4.1 per cent to N6.8 trillion, compared with the increase of 5.7 per cent at the end of the preceding quarter. The development was attributed to the 4.7 and 3.9 per cent increase in Federal Government of Nigeria Bonds and Nigeria Treasury Bills outstanding, respectively.

    “The introduction of the 50 per cent CRR on all public sector deposits continued to affect the monetary conditions of the market. Open market operations were conducted for various maturities, for liquidity management purposes.

    The bank’s discount window also remained open to authorized dealers to access both the standing deposit facility (SDF) and standing lending facility (SLF). Overall, developments in money market indicators were mixed in the review quarter,” it said.

     

  • I can suspend CBN Governor – Jonathan

    I can suspend CBN Governor – Jonathan

    President Goodluck Jonathan has insisted that he has the powers to suspend the Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi.
    Responding to questions during the Presidential Media Chat on Monday, Jonathan said ” I will tell you yes. The President has absolute powere to suspend the CBN Governor. ”
    “The CBN is not even well defined in the Nigerian Constitution. If you look at the Nigerian Constitution, Section 153 talks about executive bodies like Federal Character Commission, Civil Service Commission, Independent National Electoral Commission, the Judicial Service Commission about 14 of them. These are clearly defined. The President appoints, but the Senate must clear, for the president to remove anybody he must go through the Senate.
    ” CBN as the number one bank is not even well defined in the Nigerian Constitution, but the CBN law makes provision that to appoint the governor and deputy governors of CBN and executive directors, president appoints and send to the Senate. But the President has oversight over the CBN, so if anybody tells you that the CBN is a different country, it is not true because for the CBN to change the Colour of the Naira, the President must approve,” Jonathan stated.

  • Why Sanusi Lamido was suspended – Abati

    Why Sanusi Lamido was suspended – Abati

    Government’s action solely based on probe by Financial Reporting Council of Nigeria

    Presidential spokesman, Dr. Reuben Abati has disclosed that the suspension of the Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi earlier announced yesterday was purely based on the investigation being carried out by the Financial Reporting Council of Nigeria since May last year.

    Briefing State House correspondents at the Presidential Villa, he said that the suspension has nothing to do with the appearances of Sanusi or his claims before the Senate Investigative committee on the alleged missing money from the Federation Account.

    Sanusi Lamido had claimed that huge sums of money has been missing and not remitted to the Federation Account by the Nigerian National Petroleum Corporation (NNPC).

    Abati said that there is no cause for anxiety by the stakeholders and the international community as Nigeria’s monetary policy remains the same despite the suspension.

    He said that the Government remains committed to the stability of the economy, stability of the naira and stability of the country’s monetary policies.

    Stressing that the investigation on Sanusi Lamido’s financial recklessness is still on-going, he said that there is nothing wrong in naming a successor for his position months to the expiration of his tenure.

    According to him, President Goodluck Jonathan has not flouted the CBN Act or any law as he did not ‘remove’ the CBN governor but ‘suspended’ him, adding that he who has the power to hire also has the power to suspend.

    He said: “On the suspension of the CBN governor, the statement was very clear that the president has had to take this decision as part of attempt to strengthen the CBN to ensure that that apex bank continues to be symbol for prudence, integrity and accountability.”

    “That statement also made it clear that there has been issue regarding the financial recklessness and also violation of due process and the mandate of the CBN. And in that statement of course it was then made clear that with Mallam Sanusi proceeding on suspension, the most senior Deputy governor Dr. Sarah Alade will assume the office in an acting capacity until various reported breaches have been investigated and resolved.”

    “Since that announcement there has been many inquiries particularly with regards to the point of financial recklessness and breaches, there has also been a lot of speculation in both local and foreign media. There has been an expression of anxiety.”

    Continuing, Abati said: “On the issue of anxiety, I think nobody needs to be anxious this decision has not been taken on the country’s monetary policy, the monetary policy of the country remains the same and there is stability in the system and so investors in the Nigerian economy have no reason whatsoever to fear.”

    “That decision was taken only with regards to internal governance issue within the central bank. In the statement issues raised were very clear that there are issues of internal governance. Government remains committed to the stability of the economy, stability of the naira and stability of the country’s monetary policies.”

    “The lady who has taken over in acting capacity has been long within the system and so everyone can remain assured that there will be stability and that the institution will remain very strong.”

    Abati noted that the second concern been expressed has to do with the issue of financial recklessness.

    “I will like to say that there were issues of financial recklessness and unprofessional conduct but that did not happen today. It is not as if this is a sudden development, but that it’s been a long process dating back to last year.”

    “Last year when the CBN submitted it’s financial statement for the year ended 31st December 2012, a query was raised about some of the issues in the financial statement and the CBN governor was asked to offer some clarification with regards to these issues. This was around first week of May 2013. A response came from the CBN which was then forwarded to the Financial Reporting Council of Nigeria.”

    “And the Financial Reporting Council of Nigeria by its Act  is empowered to review the accounts of the CBN and if there is course for investigation, to conduct such investigation. And if there is need also to invite other bodies to further investigate, the law makes allowance for that.”

    “And that took place. And some of the outcomes of that process relates to the issues raised about financial recklessness.” He added

    Listing some of the alleged offences, Sanusi Lamidobis being investigated, he said: “If I may just draw attention to a few of them: the persistent refusal and negligence to comply with public procurement act in the procurement practices of the CBN; unlawful expenditure by the CBN on intervention projects across the country, deploying huge sums of money as the CBN did under the watch of Mallam Sanusi without appropriation and outside the CBN’s statutory mandate.”

    “It is said that the expenditure of public funds of course by any organ of government must be based on clear legal mandate, prudent constrain and overriding nation interest. And then financial infraction and act of financial recklessness committed by the CBN and reflected in its audited financial statement for 2012.”

    “If you need more details I will be glad to provide those details because is a long list of infractions. But it is on the basis of all of this and to allow for further investigations that the CBN governor has been asked to step aside.”

    He said that rather than alley the fear of government on those allegations, the Financial Reporting Council of Nigeria confirmed concerns about the untidy manner in which the affairs of the CBN were conducted.

    On allegation that the suspension was aimed at disrupting Sanusi Lamido’s testimony before the Senate Investigative panel, Abati said: “The question has also been raised on whether this has to do with the ongoing appearances in the National Assembly by the suspended CBN governor. I will like to state very clearly that this has nothing to do with that. I have given you the background so that you can see that this is the process.”

    “This government remains committed to ensuring integrity and accountability and discipline in every sector of the economy. And it encourages persons who have issues, who have things to say to expressed their rights through the freedom of expression under the constitution. Indeed the government of Nigeria is also interested in what the legislature is doing and do not be surprise if government goes further to initiate further audits as has been suggested in some quarters.”

    “And indeed we look forward to a situation whereby Mr. Sanusi will continue to assist the legislature in their investigations and will continue to testify because what government is interested in really is transparency and accountability and anything that will further promote that objective is perfectly welcome.” He said

    Asked why the government didn’t wait till Sanusi’s retirement in June before forwarding his replacement to the Senate, he said: “Well, I do not see untidiness in this. You know there are two vacancies, the suspended governor was due to retire in June and with the retirement of former Deputy governor Tunde Remo, there was also a vacancy at the deputy governor’s level.”

    “In many countries of the world, you do not wait till the last minute before you appoint successor particularly into a position in such a strategic institutions as the CBN. You allow room for proper transition and for the market to get to know who the new persons are.”

    “And with regards to the position of the CBN governor, I think announcing the nomination for that position is good for the market, it builds confidence, it reassures the market that there is no crisis, there is stability and that the institution is in good standing.”

    “It has nothing to do with the CBN governor, as I told you there has been a process of investigation with issues raised with regards to internal governance system in the CBN. In the country like the UK, the appointment of the current head of the Bank of England was announced about four months ahead. So this helps the systeml, it builds confidence and doesn’t keep the market in the dark. I think if anything, the president should be commended for immediately making these nominations to show that the institution remains strong and in very good standing.”

    Abati said that he was not aware of the alleged threat by Sanusi to challenge the  illegality of his suspension or any order given for Sanusi’s arrest

    He said: “I’m not aware of any directive that he should be arrested as at this moment. But of course you know that under the enabling act of the Financial Reporting Council of Nigeria, where an indictment is established and all that, the law could take its course but as at this moment I’m not aware of any directive that he should be arrested.”

    “The second one when you say the illegality of his suspension, I do not understand what you mean by that, although I am aware that some people are saying oh this is illegal but it is not.”

    “People who  talk about illegality, they are referring to Section 11 Sub Section 2 of the CBN Act. Now under that provision, the reference is to removal of the CBN governor by the president and there is a qualification there saying that provided that removal is supported by 2/3rd majority of the Senate.”

    “But what the president has done, is not removal, it is suspension. You know you do not read the provision in isolation, you read them together and the interpretation Act, if you read all of these provisions together,the thrash point is that he who hires can also has the power to suspend.”

    “So if you have the power to appoint, you also have the power to suspend. What has happened is not removal, it is suspension and that is perfectly within the purview of the law.”

    On why he was not suspended before now, Abati: “I spoke of investigation. Investigation is a process. It is not that you raise a query and that query is answered and then you immediately take a decision. And of course even with the report from financial reporting council, I told you that investigation are still continuing because there are so many issues from the FRC running into pages upon pages with annexus.”

    From a document of the Financial Reporting Council of Nigeria sighted in Abuja yesterday, the particulars of the infractions against Sanusi are:

    “Persistent refusal and/or negligence to comply with the Public Procurement Act in the procurement practices of the Central Bank of Nigeria.

    “(A) By virtue of Section 15 (1)(a) of the Public Procurement Act, the provisions of the Act are expected to comply to ‘all procurement of goods, works and services carried out by the Federal Government of Nigeria and all procurement entities.’ This definition clearly includes the Central Bank of Nigeria.

    “(B) it is however regrettable that the Central Bank of Nigeria, under your leadership, has refused and/or neglected to comply with the provisions of the Public Procurement Act (PPA). You will recall that one of the primary reasons for the enactment of the PPA was the need to promote transparency, competitiveness, cost of effectiveness and professionalism in the public sector procurement system.

    “(C) available information indicates that the Central Bank has over the years engaged in procurement of goods, works and services worth billions of Naira each year without complying with the express provisions of the PPA.

    “(D) by deliberately refusing to be bound by the provisions of the Act, the CBN has not only decided to act in an unlawful manner, but has also persisted in promoting a governance regime characterised by financial recklessness, waste and impunity, as demonstrated by the contents of its 2012 Financial Statements.

    “Unlawful expenditure by the Central Bank of Nigeria on ‘Intervention Projects’ across the country

    “(A) the unacceptable level of financial recklessness displayed by the leadership of the Central Bank of Nigeria is typified by the execution of ‘Intervention Projects’ across the country. From available information, the bank has either executed or is currently executing about 63 such projects across the country and has committed over N163billion on them.

    “(B) it is inexcusable and patently unlawful for any agency of government to deploy huge sums of money as the CBN has done in this case, without appropriation and outside CBN’s statutory mandate. It is trite that the expenditure of public funds by any organ of government must be based on clear legal mandates, prudent costing and overriding national interest.

    “Financial infractions and acts of financial recklessness committed by the Central Bank as reflected in its audited financial statements of 2012

    “(A) pursuant to Section 50 of the CBN Act 2007, a copy of the audited financial statements of the CBN for the year ended 31st December 2012 was sent to Mr. President. Based on the issues raised in the financial statement, a reinsertion was requested from you to enable a proper appreciation of the nation’s economic outlook.

    “(B) the response to this query was further referred to the Financial Reporting Council of Nigeria.

    “The review by the council, rather than allay the fears of government, further confirmed concern bout the untidy manner in which you have generally conducted the operations of the CBN.

    “Some of the salient observations arising from the review are;

    “(A) in a most ironical manner, it has become obvious that the CBN is not able to prepare its financial statements using applicable International Financial Reporting Standards (IFFS) whereas Deposit Money Banks that the CBN is supervising have complied with this national requirement since 2012.
    “Undoubtedly, this laxity on the part of our apex bank, apart from calling to question its capacity for proper corporate governance, is capable of sending wrong signals to both domestic and international investors on the state of the Nigerian economy.

    “(B) the provisions of the Memorandum of Understanding (MOU) signed by the CBN and other Deposit Money Banks on Banking Resolution Sinking Fund have been breached in a material manner. For example, a Board of Trustees (BOT) to manage the Fund has not been constituted since 2010 when it was established. The CBN has however continued to utilise the Fund for certain operations without approval of the said BOT.

    “(C) contrary to section 34 (b) of the CBN Act 2007 which provides that the CBN shall not, except as provided in Section 31 of the Act, inter alia, purchase the shares of any corporation of company, unless an entity set up by the approval or authority of the Federal Government,m CBN in 2010, acquired 7% shares of International Islamic Management Corporation of Malaysia to the tune of N0.743 billion. This transaction was neither brought to Mr. President’s attention nor was a board approval obtained before it was entered into.

    “(D) the CBN has failed or refused to implement the provisions of the Personal Income Tax (Amendment) Act 2007. Accordingly the Pay-As-You-Earn (PAYE) deductions of its staff are still being computed in accordance with the defunct Personal Income Tax Act 2004, thus effectively assisting its staff to evade tax despite the generous wage package in the CBN, relative to other sectors of the economy.

    “(E) the CBN had an additional brought forward to General Reserve Fund of N16.031 billion in 2012 but proceeded on a boy age of indefensible expenses in 2012 characterised by inexplicable increases in some heads of expenditure during the year. Examples include:

    “1. The bank spent N3.086 billion on “promotional activities” in  2012 (up from N1.084 billion in 2011). The bank spent this sum even when it is not in competition with any other institution in Nigeria;

    “2. The CBN claimed to have expended N20.202 billion on ‘Legal and Professional Fees’ in 2011 beyond all reasonable standards of prudence and accountability;

    “3. Between expenses on ‘Private Guards’ and ‘Lunch for Policemen’, the CBN claimed to have spent N1.257 billion in 2012;

    “4. While Section 6(3)(c) of the CBN Act 2007 provides that the board of the CBN is to make recommendations to Mr. President on the rate of renumeration to Auditors, the bank has consistently observed this provision in breach and even went to the extent of changing one of the Joint External Auditors without notifying the office of the President.

    “5. In the explanations offered by the CBN pursuant to presidential directives, it offered a breakdown of ‘Currency Issue Expenses’ for 2011 and 2012. Interestingly, it claimed to have paid N38.233 billion to the Nigerian Security Printing and Minting. Company Limited (NSPMC) in 2011 for ‘Printing of Banknotes.’ Paradoxically however, in the same 2011, NSPMC reported a total turnover of N29.370 billion for all its transactions with all clients (including the CBN).

    “6. It is significant to note that the external audit revealed balances of sundry foreign currencies without physical stock of foreign currencies in the CBN Head Office.

    “Questionable write-off of N40 billion loans of a bank

    “The above issues are only a few of the infractions highlighted by the review and which point to the gross incompetence and recklessness which characterised the operations of the CBN in the period under review.”

    Meanwhile the Minister of Petroleum Resources, Daizani Allison-Madueke, the Group Managing Director of NNPC, Andrew Yakubu and the Chairman of the Senate Committee on Finance, Ahmed Makarfi were at the Villa to meet with President Jonathan yesterday evening.

    When asked what his mission was in the Villa, Makarfi said: “No comment.”

  • Credit crunch hits banks

    Credit crunch hits banks

    The Central Bank of Nigeria, CBN’s decision to increase the Cash Reserve Requirement (CRR) on public sector deposits in banks from 12 to 50 per cent, analysts have argued, would have profound effects on the money market, real economy as well as the stock market, reports Bukola Afolabi

    This is not the best of times for most money deposit banks operating in the country. The reason is because the apex decision to withdraw trillions of naira hitherto in their custody, in a manner of speaking, has rendered the banks literally cash-trapped.

    The genesis Peeved by what he described as unrelenting attitude by banks to support the key sectors of the economy, President Goodluck Jonathan had issued a veiled threat during the opening of the 7th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja recently.

    The allegations against the banks, according to him, the banks among other things that they were not doing enough to support the real sector despite several policies and measures that had been put in place to create enabling environment for them to thrive over the years.

    While buttressing his arguments, Jonathan said but for the CBN’s intervention through financial intermediation support such as the Commercial Agricultural Credit Scheme (CACS) and Nigerian Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL) the agricultural sector would have totally lost the funding support it needs to grow and play its roles in national development.

    The president who spoke through the Minister of State for Finance, Dr. Lawan Yerima Ngama, also noted that the banks get money from the government at zero interest rate but continue to deny the productive sectors the required funding support.

    He warned that if the banks fail to play their roles, the government might withdraw all its deposits in the banks and put substantial part of the fund to support productive sectors, while describing the oil sector as external to the economy because there is little it is drawing from Nigeria to create wealth.

    Sledge hammer

    The enforcement of the 50 per cent public sector squeeze saw the withdrawal of about N1.2 trillion from the system. The new monetary policy mandates banks to keep 50 per cent of public sector funds, which comprise deposits of all tiers of government as well as ministries, departments and agencies (MDAs) with the CBN.

    Implication on the economy

    As would be expected, the decision by the Federal Government has elicited mixed reactions from a cross-section of stakeholders who have argued matter-of-factly that it may have a rippled effect on the economy.

    One of those who holds this view and very strongly too is the Director General of Lagos Chamber of Commerce and industry Muda Yusuf.

    “The policy action represents a further tightening of liquidity in the economy in furtherance of the CBN objectives of promoting price stability.  We would see a further increase in interest rates which means an added pressure on the operating cost of investors in the economy. High interest rates will ultimately affect profit margins.  The impact is not just on the real sector, but the broad spectrum of investors in the economy.  We are therefore likely to see interest rates moving to new thresholds of between 25 and 30%.  If other charges are added, the cost of fund could be in excess of 30%,” he said.

    He was however quick to add that, “This development would be good news to depositors as interest rates on deposits would trend upwards. The scramble for funds by banks would push up deposit rates which would mean better returns for those placing funds with the banks and other financial institutions. There is however the worry that this development may adversely affect the stock market.  Typically, the gains of the money market are often the loss of stock market.”

    Expatiating, he said: “Generally a tight liquidity situation often enhances the stability of naira exchange rate and the moderation of inflation. This is another possible gain of the new monetary policy regime.”

    In the view of Alhaji Kafaru Atiku of Managing Director, Express Discount Limited, “Cash Reserve Requirement is the portion, expressed as a percentage of bank’s deposit balances, which banks must have as reserve, in cash, with the Central Bank. The percentage is usually determined by the country’s Central Bank and subject to change from time to time as deem fit by the Central Bank of a country. The reserve ratio is one of the instruments used to influence the money supply in a country and drain out or add up excessive money from the system. In essence it is one of the instruments used in controlling the country liquidity in terms of cash.

    “Depending on the country liquidity position or monetary policy, if the Central Bank increases the percentage, the available money for the banks to lend and make other transactions will reduce and vice versa if it is reduced.

    “In Nigeria it is the Monetary Policy committee that is saddled with the responsibility of regulating the Cash Reserve Requirement and other key monetary policy instruments

    “The implication of the policy will put more pressure on the banks particularly those that has more of government and parastatals funds in their possession. It will tighten their liquidity there by making borrowing to all and sundry difficult.

    “It will also increase the funding cost and interbank rates as a lot of banks will be borrowing to beef up their liquidity position.

    “The amount being mopped up by the CBN will be at zero interest rate which has an alternative usage by the banks thereby generating income to the benefit of stakeholders. It will also push interest rates on money deposit upward.

    While making his own observation, the Managing Director/Chief Executive Officer, Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane, had in his assessment of the banking system in a report titled: ‘The Public Sector Deposit Volcano Erupts’, presented at the August edition of the Lagos Business School’s breakfast session, said a awful time awaits the nation’s banking sector.

    The FDC’s report was released a day before the House of Representatives Committee on Banking and Currency threw its weight behind the CBN’s decision to withdraw 50 per cent of public sector funds from commercial banks in the country.

    Rewane said: “The total sum of money to be quarantined is N890 billion. The percentage of total debits (N890 billion) to M2 (broad money supply) is about 5.7 per cent, while the percentage of total debits (N890 billion) to total deposits is about 6.4 per cent. So average interest rates are expected to rise as liquidity is tightened.”

    The FDC boss argued that banks would be forced to sell their treasury bills and bonds in order to cover their position. “Banks could follow the alternative route through repurchase of maturing Asset Management Corporation of Nigeria (AMCON) bonds to CBN. Banks will be expected to take one-off losses of N1 billion to N5 billion on this position, depending on the size of their public sector funds. “Either way will lead to a squeeze in banks’ net interest margins.”

    Accordingly, banking stocks are expected to be discounted further as earnings capacity declines,” he declared.

    The policy, according to him, would also see banks’ loan portfolio shrink due to trade-off between liquidity and profitability.

    Imprimatur of support

    In the meantime, the lower federal legislature’s Committee on Banking and Currency last Wednesday lent its support to the CBN’s decision to withdraw 50 per cent of public sector funds from the banking system.

    Commenting on the issue, Chairman of the committee, Hon. Chukwudi Onyereri, said the decision was in line with the clamour of the committee in the last two years.

    Onyereri recalled that since the inception of the 7th Assembly, the committee had been pushing for the withdrawal of public funds from commercial banks.

    According to him, the committee had raised the issue at different interactive forums with the CBN and other financial institutions, including the Chartered Institute of Bankers of Nigeria (CIBN).

    The lawmaker said though a total withdrawal of public sector funds from the commercial banks was desirable, what the CBN had done was a good step in the right direction.

    Onyereri said in the long run, the decision would bring the much-needed respite for consumers from high bank charges, lack of banking incentives and high interest rates.

    “We have stressed the need for the withdrawal of public funds from commercial banks so that banks can go back and focus on their core banking functions.

    “The withdrawal of public funds from commercial banks will force banks to look for alternative funds, which will in turn lead to offering better incentives to the public, including higher deposit rates and an increase in private sector lending,” he said.

    Divergent view

    Meanwhile an economics Henry Boyo in his own view said that it is bad enough to ever have to borrow one’s money back. “But for our own Central Bank to have done so for so many years at rates of between 13 and 14 per cent, as recently admitted by the CBN Governor, Lamido Sanusi, can at best be described as an unfortunate moral hazard, which probably borders on economic sabotage,” he argued.

    Speaking further, he said: “Indeed, according to the Deputy Governor, Corporate Services and Directorate, Alhaji Suleman Barau, who corroborated Sanusi’s observation, the three tiers of government had over N3tn lodged in zero-interest-yielding accounts in commercial banks by June 2013.

    “Barau also revealed that the usual custom of removing the systemic surplus cash, instigated by the presence of such free government funds, from banks vaults, may have already improved the profitability of banks by about N300bn, even when they added no value to the economy. Thus, despite our economic and infrastructural hemorrhage, in addition to almost N5tn from the CBN and AMCON cash interventions in recent years, banks may have enjoyed a bonanza of over N3000bn for doing nothing in the last 10 years!  It is even worse that regardless of the huge cost of debt service, the funds borrowed were simply kept idle (sterilised) by the apex bank, as it were, in order to control excess cash supply in the system. Interestingly, the CBN mischievously blames excessive government spending for its failure to bring about lower single-digit interest and inflation rates.”

    To many analysts, Sanusi’s recent directive that banks must keep 50 per cent of their government deposits inactive, as reserves, is obviously an attempt to stem the folly and the inexplicable fraudulent practice of government borrowing back its own money at horrendous cost.

    Best practice

    Continuing, Boyo stressed that unlike what obtains in the nation’s banking landscape, globally, the best practice is to increase government spending, in order to create demand, boost industrial activities and job opportunities, in any economy plagued with mass unemployment.

    The CBN, he stressed, “cannot therefore make increased government spending the scapegoat for inflation and high cost of funds in an ailing economy, which requires urgent cash interventions to stimulate demand and production, and reduce mass unemployment.

    “If public sector deposits in June 2013 constituted 20 per cent of the N15tn bank deposit base, where then is the touted public sector dominance? 50 per cent public sector CRR is a half measure, which the next MPC meeting should change  to 100 per cent, and make irreversible, such a measure will not induce banking distress, because there remains a further N12tn of private deposits that endows the bank with a maximum lending capacity of N96tn (with CRR at 12 per cent),” Boyo said.

  • NDIC report: Experts score regulators low

    NDIC report: Experts score regulators low

    Mixed reactions have greeted the Nigeria Deposit Insurance Corporation (NDIC) last year’s Annual Report & Statement of Accounts, which ranked 10 banks sound, nine satisfactory and one marginal. While some analysts see it as an indication of a poor performance despite the huge funds committed to the reforms in the sector, others see it as a clarion call on regulators to be alive to their responsibilites, writes COLLINS NWEZE.

    The disclosure by the Nigeria Deposit Insurance Corporation (NDIC) in its last year’s Annual Report & Statement of Accounts, that only 10 out of 20 Deposit Money Banks (DMBs) in the country are sound shows that regulators of the financial system have failed, analysts have said.

    They said given the amount of money sunk into the reforms by the Federal Government and the ongoing contributions from banks to the Asset Management Corporation of Nigeria (AMCON), having only sound 10 banks, is a poor outing. The result represents a 50 per cent score. The regulators were adjudged as having performed poorly considering the volume of money committed to the reforms. The report, however, gave nine banks satisfactory rating while one lender was rated as marginal.

    The Central Bank of Nigeria (CBN) had in 2009 injected N620 billion into eight banks to keep them afloat. In August 2011, AMCON spent N679 billion to acquire the bridged banks- former Afribank (Mainstreet Bank), Bank PHB (Keystone Bank) and Springbank (Enterprise Bank).

    The capital provided by AMCON through shares subscription was meant to strengthen the banks’ liquidity to enable them to carry on business and meet all their obligations. The fund was to enable them to meet the minimum capital base of N25 billion and the minimum capital adequacy ratio of 15 per cent.

    Former Executive Director, Bank PHB, Richard Obire, said the fact that only 50 per cent of the banks are sound means that Nigerians have not got value for their money.

    He said any performance that is below 80 per cent is unacceptable, and should be improved on by both the CBN and NDIC.

    “Nigerians should demand 80 per cent result because of the huge sums of money spent on the reforms. Tax payers’ money went into the funding of the AMCON and banks are still funding the corporation,” he said.

    He further said many thought that AMCON would be a quick resolution mechanism, but has been foot dragging with banks contributing 0.5 per cent of their total assets into its operation, which is also indirectly passed to banks’customers as fees. “Remember that whatever the banks are contributing to AMCON is also passed to their customers as fees. So, in all, the banking public are not getting value for their money,” he said.

     

    Banking assets Vs loans

    According to the NDIC report, the total industry’s assets of N24.58 trillion, out of which total loans and advances of N8.15 trillion, represent over 33 per cent (or one-third).

    The report further noted that of the industry’s total loans, N4.48 trillion or 54.97 per cent was extended to the real sector of the economy in 2012 compared to N3.88 trillion or 53.37 per cent and N3.51 trillion or 48.95 per cent in 2011 and 2010.

    Obire said 33 per cent loan advances is poor. Noting that the primary responsibility of a bank is to offer loans to the real sector of the economy, the banks should strive to achieve between 60 and 70 per cent of their assets as loans. He advised banks to strengthen their risk management to enable them to lend more to customers. “Banks should be able to deploy loans to those who need them at the right time,” he said.

    But the NDIC said the report gave it a pat in the discharge of its mandate in payment guarantee, supervision, failure resolution and liquidation. “The achievements attained in 2012 were due to many factors, which include the deployment of a robust performance management system, enhancement of the enterprise risk management system as well as enhanced capacity building in risk-based supervision (RBS) and other areas of operations, among others,” it said.

    Also, the Managing Director, Financial Nigeria International Jide Akintunde said the reforms have not performed badly, given that the 10 sound banks may hold 70 per cent of the sector’s assets.

    This does not suggest that the banking reforms have not worked, urging the regulators to be alert to ensure that any anomaly on the part of banks is corrected.

    He said the 33 per cent loans by banks is not a bad for the lenders, adding that majority of them are being more careful in advancing credits. “The 33 per cent loan position is not a bad outing. But many of them are looking at environmental factors and are also being more careful to avoid repeat of past mistakes when they created bad loans,” he said.

    Akintunde also said banks are still conservative; in some cases, they lack the expertise to handle some specialised loans.

     

    Microfinance banks

    Last year, the NDIC conducted routine examination of 246 microfinance banks (MfBs); six were found to have closed shop. It also conducted risk-based exam of 40 primary mortgage banks (PMBs); three were found to have voluntarily closed shop.

    A total of 302 MfBs had capital adequacy ratio of more than 10 per cent. The remaining 555 did not render returns and this has continued to be a source of concern to NDIC as it was impossible to assess their financial condition and performance on continuously during review.

    An operator in the MfB sector, who asked not to be named, said though the CBN is planning to launch the Microfinance Development Fund (MDF) next month, it is even coming too late. He said the fund would have been provided four years ago, to enable operators to use it in enhancing their operations. The MDF is expected to provide funding for the sector.

    The source said many of the MfBs lack working capital, adding that there is no way such operators could lend to the economy. He added that it is only MfBs with foreign financial bulwark that are doing well.

    Also, Managing Director, CRC Credit Bureau Limited, Tunde Popoola said the MfB subsector, is agging behind and that less than 10 per cent of them has access to credit bureau services. He said many of the MfBs lack the infrastructure to key into some services.

    Popoola said many of the MfBs do not have software that can take information like date of birth and sex of the customer, making it difficult for them to make progress.

    According to Afrinvest West Africa, DMB’s last year’s profitability report showed that all Tier-1 banks recorded gross earnings in excess of N200 billion compared to Tier-2 banks’ N102 billion average. The Tier-1 banks are First Bank of Nigeria Limited, GT Bank, Zenith Bank, United Bank for Africa and Access Bank.

    It said last year, banks’ management tried to beat high earnings expectations, causing them to focus on fixed income securities like treasury bills because of their high yield capabilities. The report projected that the “treasury focused” investment strategy would moderate in the year as outlook on yields and fee income decline.

    The report listed key pillars of the reforms to include enhancing the quality of banks, establishing financial stability, enabling healthy financial sector evolution and ensuring the financial sector contributes to the real economy.

    The Afrinvest report said the future of the banking space will rest on ancillary banking services such as merchant banking and primary mortgage institutions. There are also renewed hopes in retail banking and Small and Medium Scale Enterprises (SMEs) banking. The industry, it claimed, is confronted with the reality of declining fee incomes, mobile money and dollar denominated capital sourcing.

    It predicted that in the next five years, outlook on yields and fee income will remain downwards, necessitating the need for banks to focus on lending to the real sector. Also, banks are expected to develop and grow the depth of their core retail banking businesses to retain and amplify cheap deposits.

     

    Banks-in-liquidation

    The NDIC continued to pay depositors of banks-in-liquidation during the review. It paid N6.82 billion to 528,212 insured depositors of closed banks by December 31, last year as against N6.68 billion paid to 527,942 insured depositors the previous year. That feat was achieved in spite of the long closure of the banks and the unwillingness of many depositors to file for their claims.

     

    Risk-based-examination

    The report said NDIC, in collaboration with the CBN, conducted Risk-Based Examination of 16 deposit money banks (DMBs) during the year. The NDIC led the examination of six of the banks while the CBN led in 10. Beside, the two institutions conducted a maiden examination of Keystone Bank, Mainstreet Bank and Enterprise Bank during the year.

    While the CBN led the examination of Mainstreet Bank and Enterprise Bank, NDIC led the examination of Keystone Bank. The corporation in collaboration with the CBN also conducted the maiden examination of Jaiz Bank Plc and the Stanbic-IBTC Non-Interest window during the year under review.

     

    Capital adequacy ratio

    Furthermore, the banking industry was adequately capitalised in the year with capital adequacy ratio of 18.07 per cent compared to 17.71 per cent recorded in 2011. All the DMBs also met the minimum liquidity threshold of 30 per cent.

    The asset quality improved during the year as the ratio of non-performing loans to total loans decreased from 4.95 per cent in 2011 to 3.51 per cent last year. The improvement in the industry’s asset quality was because of the purchase of the non-performing loans of DMBs by AMCON and the enhanced credit risk management by DMBs.

     

    Fraud

    The DMBs reported 3,380 fraud cases involving N17.97 billion with expected/contingent loss of about N4.52 billion. The expected/contingent loss had increased by N455 million about 10.9 per cent, as against N4.072 billion reported in 2011.

    Notwithstanding the 43.7 per cent increase in the number of reported fraud cases from 2,352 in 2011 to 3,380 last year, it decreased by 36.4 per cent from N28.40 billion in 2011 to N18.04 billion in 2012.

     

    PMBs

    The licences of 24 PMBs, which closed shop and were unable to meet obligations to their depositors and creditors were revoked by the CBN and NDIC was subsequently appointed as liquidator.

    As at December last year, 310 out of the 323 MFBs that rendered returns had met the minimum paid-up capital of N20 million.

  • Accounting students visit EFCC, CAC

    A CCOUNTING students of Adekunle Ajasin University, Akungba-Akoko (AAUA) have gone on academic visit to Abuja, the nation’s capital. The students, under the aegis of the Nigerian Universities Accounting Students Association (NUASA), were accompanied by the Head of Accounting Department, Dr E.I. Bowale, and a lecturer in the department, Mr Alade Muyiwa.

    During the three-day trip, the students visited top government’s organisations and financial houses. On the first day, students visited to the Corporate Affairs commission (CAC), where they were received and lectured by top officials of the organisation. On the same day, they visited the office of The Economic and Financial Crimes Commission (EFCC).

    On second day, the students left for Nigerian Stock Exchange (NSE) office, where they received training on how to trade in stock market by officials of the financial firm. They proceeded to the University of Abuja (UNIABUJA); they were received by the chapter president of NUASA, Ade Jacobs and his colleagues.

    The students were engaged in discussion on to tackle the challenges facing both institutions. They later gathered for group photograph.

    On the third day, the students visited Central Bank of Nigeria (CBN), where they were conducted round the facility by officials in accounting department. One of the places visited by the students was the CBN Currency Museum.

    The president of the students, John Oladele, said the visit was to educate members on certain area in the discipline. Describing the trip as successful, John appreciated the effort of his colleagues in making the excursion memorable.

    Vice President, Bisola Jubril, a 300-Level student, commended the association’s Staff Adviser for his encouragement. One of the participants, Eniola Aladetunlese, a 100-Level student, said the trip was educative.